Woolwich cuts costs of fixed rate mortgages
Woolwich, the lending arm of Barclays, has cut the cost of many of its fixed mortgages enabling customers to take advantage of rates below four per cent fixed for two, three or four years.
Two year fix and track mortgages have been reduced from 4.39 per cent to 3.89 per cent, a reduction of 0.5 percentage points, whilst three year fixed rates have been cut by 0.7 percentage points from 4.69 per cent to 3.99 per cent. At the end of the fixed period all fixed rate mortgages revert to a very competitive tracker mortgage of 1.49 per cent above base for the remaining life of the mortgage.
To support those looking to buy in the current market, Woolwich has launched a new range of four year fixed rate mortgages designed purely for home purchase. For buyers with a deposit of 20 per cent, the rate will be fixed at 4.99 per cent for four years with the same follow-on rate of 1.49 per cent above base for the remaining life of the mortgage. The rate is fixed at 3.99 per cent for mortgages with a 40% deposit.
The market-leading one-year fix and track at 2.29 per cent launched last month remains the cheapest mortgage rate ever offered by Woolwich. After one year the mortgage switches to a competitive tracker at 2.29 per cent above base rate for the remaining life of the mortgage which, at current rates, would be 3.29 per cent.
Chris Keane, Head of Mortgage Products for Barclays said: “In these uncertain times, many of our customers are looking for some certainty and we have therefore taken the opportunity to reduce the rates on the bulk of our fixed rate range. The one year fix and track remains the cheapest rate we have ever offered so adding to the range with the two and three year fixed rates – both below four per cent and both with a very attractive follow-on rate – gives customers a choice of even more keenly priced deals.
“Whilst a large percentage of our customers are remortgagers, we have acknowledged the needs of buyers at this time with the dedicated purchase-only deal designed specifically to meet the requirements of this group. The rate is fixed for four years to match the average term of tenure in a first property and, at under five per cent for up to 80 per cent loan to value, looks very attractive.”
Woolwich’s competitive range of long-term value mortgages saw it gain an increased 36 per cent share of net new mortgage lending in 2008 – the largest in the market. More information on the full range of Woolwich mortgages is available at www.barclays.co.uk/mortgages.
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